Ethiopia outperformed its east African neighbors in attracting foreign direct investments (FDIs) in 2023, according to the UN Conference on Trade and Development (UNCTAD).
Ethiopia drew $3.3 billion in FDIs in 2023, surpassing Kenya and Uganda. This year, Ethiopia expects to attract $3.5 billion in FDIs.
Chinese investments would account for 50% of FDIs in Ethiopia this year, according to data by the Ethiopian Investment Commission.
The country has launched reforms to improve its attractiveness to foreign investors as well as energy projects that attracted UAE investors.
Last year, the Ethiopian parliament endorsed a proclamation opening doors for foreign investment in the financial sector.
UNCTAD’s report also highlights that FDI inflows to Africa decreased by 3% in 2023, totaling $53 billion.
Egypt was the top African country for FDI, attracting $9.8 billion, followed by South Africa with $5.2 billion.